Business Driven Technology

CHAPTER 01

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OUTCOMES

1. Describe the information age and the differences between data, information, business intelligence, and knowledge.

2. Identify the different departments in a company and why they must work together to achieve success.

3. Explain systems thinking and how management information systems enable business communications.

1-2

COMPETING IN THE INFORMATION AGE

• Currently infinite quantities of facts are widely available to anyone who can use a computer

• Many business leaders have created exceptional opportunities by coupling the power of the information age with traditional business methods

1-3

COMPETING IN THE INFORMATION AGE

• Examples of the power of business and technology:

– Amazon—Not a technology company; primary business focus is selling books

– Netflix—Not a technology company; primary business focus is renting videos

– Zappos—Not a technology company; primary business focus is selling shoes

1-4

INFORMATION TECHNOLOGY’S ROLE IN BUSINESS

• Information technology is everywhere in business

• Understanding information technology provides greater insight to anyone learning about business

1-5

INFORMATION TECHNOLOGY’S IMPACT ON BUSINESS OPERATIONS

• Organizations typically operate by functional areas or functional silos

• Functional areas are interdependent

• IT plays a critical role in deploying enterprisewide initiatives to achieve business goals

1-6

INFORMATION TECHNOLOGY BASICS

• Information technology (IT)—A field concerned with the use of technology in managing and processing information

• Information technology is an important enabler of business success and innovation

1-7

INFORMATION TECHNOLOGY BASICS

• Management information systems (MIS)—A general name for the business function and academic discipline covering the application of people, technologies, and procedures – collectively called information systems – to solve business problems

• MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources

1-8

INFORMATION TECHNOLOGY BASICS

• When beginning to learn about information technology it is important to understand the following:

– Data, information, and business intelligence– IT resources– The challenge: departmental companies– The solution: management information system

1-9

DATA, INFORMATATION, AND BUSINESS INTELLIGENCE

• Data—raw facts that describe the characteristic of an event

• Information—data converted into a meaningful and useful context

• Business Intelligence—applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts

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IT RESOURCES

• The plans and goals of the IT department must align with the plans and goals of the organization

• People use

• Information technology to work with

• Information

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THE CHALLENGE: DEPARTMENTAL COMPANIES

Common Departments Working Independently

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THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

Common Departments Working Interdependently

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THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

Systems thinking—A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback

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THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

Management Information Systems (MIS)— A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving

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